Calculate how much money would be in the account

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Question - Your parents started putting some money in a trust fund for you on the day you first attend kindergarten. i.e., five-year old. You are now 25 years old now and you plan to buy a piece of land worth RM 888,000 and you plan to take the money from the savings account to pay for the 25% deposit money. The account currently has RM 282,828 in it and pays 8% annual compound interest rate.

Required -

(a) Calculate how much money did your parents originally put into the trust fund account?

(b) Calculate how much money would be in the account if you left the money there till your 50th birthday, after making the 25% deposit for your factory at the age of 25 and it pays 6% annual compound interest rate?

(c) Your piece of land loan mortgage rate is 5% and you have secured a 30 years loan mortgage for your piece of land. Are you able to pay off your mortgage loan with the savings on your 40th birthday?

Reference no: EM133114339

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